Bill Text: IL HB5391 | 2021-2022 | 102nd General Assembly | Introduced
Bill Title: Amends the Invest in Kids Act. Provides that non-public pre-kindergarten schools are considered qualified schools. Provides that contributions made by individuals may be directed to a particular subset of schools or a particular school. Allows qualified schools to set a maximum scholarship amount, which may not exceed the necessary costs and fees for attendance at the qualified school. Effective immediately.
Spectrum: Slight Partisan Bill (Republican 2-1)
Status: (Introduced - Dead) 2022-02-18 - Rule 19(a) / Re-referred to Rules Committee [HB5391 Detail]
Download: Illinois-2021-HB5391-Introduced.html
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1 | AN ACT concerning revenue.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Invest in Kids Act is amended by changing | |||||||||||||||||||||||
5 | Sections 5, 10, 40, and 65 as follows:
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6 | (35 ILCS 40/5) | |||||||||||||||||||||||
7 | (Section scheduled to be repealed on January 1, 2025)
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8 | Sec. 5. Definitions. As used in this Act: | |||||||||||||||||||||||
9 | "Authorized contribution" means the contribution amount | |||||||||||||||||||||||
10 | that is listed on the contribution authorization certificate | |||||||||||||||||||||||
11 | issued to the taxpayer.
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12 | "Board" means the State Board of Education.
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13 | "Contribution" means a donation made by the taxpayer | |||||||||||||||||||||||
14 | during the taxable year for providing scholarships as provided | |||||||||||||||||||||||
15 | in this Act. | |||||||||||||||||||||||
16 | "Custodian" means, with respect to eligible students, an | |||||||||||||||||||||||
17 | Illinois resident who is a parent or legal guardian of the | |||||||||||||||||||||||
18 | eligible student or students.
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19 | "Department" means the Department of Revenue. | |||||||||||||||||||||||
20 | "Eligible student" means a child who:
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21 | (1) is a member of a household whose federal adjusted | |||||||||||||||||||||||
22 | gross income the year before he or she
initially receives | |||||||||||||||||||||||
23 | a scholarship under this program, as determined by the |
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1 | Department, does not exceed 300% of the federal poverty
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2 | level and, once the child receives a scholarship, does not | ||||||
3 | exceed 400% of the federal poverty
level;
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4 | (2) is eligible to attend a pre-kindergarten school, | ||||||
5 | public elementary school , or high school in Illinois in | ||||||
6 | the semester immediately preceding the semester for which | ||||||
7 | he or she first receives a scholarship or is
starting | ||||||
8 | school in Illinois for the first time when he or she first | ||||||
9 | receives a scholarship; and
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10 | (3) resides in Illinois while receiving a scholarship. | ||||||
11 | "Family member" means a parent, child, or sibling, whether | ||||||
12 | by whole blood, half blood, or adoption; spouse; or stepchild. | ||||||
13 | "Focus district" means a school district which has a | ||||||
14 | school that is either (i) a school that has one or more | ||||||
15 | subgroups in which the average student performance is at or | ||||||
16 | below the State average for the lowest 10% of student | ||||||
17 | performance in that subgroup or (ii) a school with an average | ||||||
18 | graduation rate of less than 60% and not identified for | ||||||
19 | priority.
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20 | "Jointly administered CTE program" means a program or set | ||||||
21 | of programs within a non-public school located in Illinois, as | ||||||
22 | determined by the State Board of Education pursuant to Section | ||||||
23 | 7.5 of this Act. | ||||||
24 | "Necessary costs and fees" includes the customary charge | ||||||
25 | for instruction and use of facilities in general
and the | ||||||
26 | additional fixed fees charged for specified purposes that are |
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1 | required generally of non-scholarship recipients for each | ||||||
2 | academic period for which the scholarship applicant actually | ||||||
3 | enrolls, including costs associated with student assessments, | ||||||
4 | but does not
include fees payable only once and other | ||||||
5 | contingent deposits that are refundable in whole or in part. | ||||||
6 | The Board may prescribe, by rules consistent with this Act, | ||||||
7 | detailed provisions concerning the computation of necessary | ||||||
8 | costs and fees.
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9 | "Scholarship granting organization" means an entity that:
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10 | (1) is exempt from taxation under Section 501(c)(3) of | ||||||
11 | the Internal Revenue Code;
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12 | (2) uses at least 95% of the qualified contributions | ||||||
13 | received during a taxable year for scholarships;
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14 | (3) provides scholarships to students according to the | ||||||
15 | guidelines of this Act;
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16 | (4) deposits and holds qualified contributions and any | ||||||
17 | income derived from qualified contributions
in an account | ||||||
18 | that is separate from the organization's operating fund or | ||||||
19 | other funds until such qualified contributions or income | ||||||
20 | are withdrawn for use; and
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21 | (5) is approved to issue certificates of receipt.
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22 | "Technical academy" means a non-public school located in | ||||||
23 | Illinois that: (1) registers with the Board pursuant to | ||||||
24 | Section 2-3.25 of the School Code; and (2) operates or will | ||||||
25 | operate a jointly administered CTE program as the primary | ||||||
26 | focus of the school. To maintain its status as a technical |
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1 | academy, the non-public school must obtain recognition from | ||||||
2 | the Board pursuant to Section 2-3.25o of the School Code | ||||||
3 | within 2 calendar years of its registration with the Board. | ||||||
4 | "Qualified contribution" means the authorized contribution | ||||||
5 | made by a taxpayer to a scholarship granting organization for | ||||||
6 | which the taxpayer has received a certificate of receipt from | ||||||
7 | such organization.
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8 | "Qualified school" means a non-public school , including a | ||||||
9 | non-public pre-kindergarten school, located in Illinois and | ||||||
10 | recognized by the Board pursuant to Section 2-3.25o of the | ||||||
11 | School Code.
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12 | "Scholarship" means an educational scholarship awarded to | ||||||
13 | an eligible student to attend a qualified school
of their | ||||||
14 | custodians' choice in an amount not exceeding the necessary | ||||||
15 | costs and fees to attend that school.
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16 | "Taxpayer" means any individual, corporation, partnership, | ||||||
17 | trust, or other entity subject to the Illinois income tax. For | ||||||
18 | the purposes of this Act, 2 individuals filing a joint return | ||||||
19 | shall be considered one taxpayer.
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20 | (Source: P.A. 102-16, eff. 6-17-21.)
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21 | (35 ILCS 40/10) | ||||||
22 | (Section scheduled to be repealed on January 1, 2025)
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23 | Sec. 10. Credit awards. | ||||||
24 | (a) The Department shall award credits against the tax | ||||||
25 | imposed under subsections (a) and (b) of Section 201 of the |
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1 | Illinois Income Tax Act to taxpayers who make qualified | ||||||
2 | contributions. For contributions made under this Act, the | ||||||
3 | credit shall be equal to 75% of the total amount of
qualified | ||||||
4 | contributions made by the taxpayer during a taxable year, not | ||||||
5 | to exceed a credit of $1,000,000 per taxpayer.
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6 | (b) The aggregate amount of all credits the Department may | ||||||
7 | award under this Act in any calendar year may not exceed | ||||||
8 | $75,000,000. | ||||||
9 | (c) Contributions made by individuals, corporations | ||||||
10 | (including Subchapter S corporations), partnerships, and | ||||||
11 | trusts under this Act may not be directed to a particular | ||||||
12 | subset of schools, a particular school, a particular group of | ||||||
13 | students, or a particular student.
Contributions made by | ||||||
14 | individuals under this Act may be directed to a particular | ||||||
15 | subset of schools or a particular school but may not be | ||||||
16 | directed to a particular group of students or a particular | ||||||
17 | student. | ||||||
18 | (d) No credit shall be taken under this Act for any | ||||||
19 | qualified contribution for which the taxpayer claims a federal | ||||||
20 | income tax deduction. | ||||||
21 | (e) Credits shall be awarded in a manner, as determined by | ||||||
22 | the Department, that is geographically proportionate to | ||||||
23 | enrollment in recognized non-public schools in Illinois. If | ||||||
24 | the cap on the aggregate credits that may be awarded by the | ||||||
25 | Department is not reached by June 1 of a given year, the | ||||||
26 | Department shall award remaining credits on a first-come, |
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1 | first-served basis, without regard to the limitation of this | ||||||
2 | subsection.
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3 | (f) Credits awarded for donations made to a technical | ||||||
4 | academy shall be awarded without regard to subsection (e), but | ||||||
5 | shall not exceed 15% of the annual statewide program cap. For | ||||||
6 | the purposes of this subsection, "technical academy" means a | ||||||
7 | technical academy that is registered with the Board within 30 | ||||||
8 | days after the effective date of this amendatory Act of the | ||||||
9 | 102nd General Assembly. | ||||||
10 | (Source: P.A. 102-16, eff. 6-17-21.)
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11 | (35 ILCS 40/40) | ||||||
12 | (Section scheduled to be repealed on January 1, 2025)
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13 | Sec. 40. Scholarship granting organization | ||||||
14 | responsibilities. | ||||||
15 | (a) Before granting a scholarship for an academic year, | ||||||
16 | all scholarship granting organizations shall assess and | ||||||
17 | document each student's eligibility for the academic year.
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18 | (b) A scholarship granting organization shall grant | ||||||
19 | scholarships only to eligible students.
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20 | (c) A scholarship granting organization shall allow an | ||||||
21 | eligible student to attend any qualified school of the | ||||||
22 | student's choosing, subject to the availability of funds.
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23 | (d) In granting scholarships, a scholarship granting | ||||||
24 | organization shall give priority to the following priority | ||||||
25 | groups: |
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1 | (1) eligible students who received a scholarship from | ||||||
2 | a scholarship granting organization during the previous | ||||||
3 | school year;
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4 | (2) eligible students who are members of a household | ||||||
5 | whose previous year's total annual income does not exceed | ||||||
6 | 185% of the federal poverty level;
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7 | (3) eligible students who reside within a focus | ||||||
8 | district; and
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9 | (4) eligible students who are siblings of students | ||||||
10 | currently receiving a scholarship.
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11 | (d-5) A scholarship granting organization shall begin | ||||||
12 | granting scholarships no later than February 1 preceding the | ||||||
13 | school year for which the scholarship is sought. The priority | ||||||
14 | groups identified in subsection (d) of this Section shall be | ||||||
15 | eligible to receive scholarships on a first-come, first-served | ||||||
16 | basis until the April 1 immediately preceding the school year | ||||||
17 | for which the scholarship is sought. Applications for | ||||||
18 | scholarships for eligible students meeting the qualifications | ||||||
19 | of one or more priority groups that are received before April 1 | ||||||
20 | must be either approved or denied within 10 business days | ||||||
21 | after receipt. Beginning April 1, all eligible students shall | ||||||
22 | be eligible to receive scholarships without regard to the | ||||||
23 | priority groups identified in subsection (d) of this Section. | ||||||
24 | (e) Except as provided in subsection (e-5) of this | ||||||
25 | Section, scholarships shall not exceed the lesser of : (i) the | ||||||
26 | statewide average operational expense per
student among public |
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1 | schools ; or (ii) the necessary costs and fees for attendance | ||||||
2 | at the qualified school ; or (iii) the maximum scholarship | ||||||
3 | amount set by the qualified school, if the qualified school | ||||||
4 | chooses to set such an amount, which may not exceed the | ||||||
5 | necessary costs and fees for attendance at the qualified | ||||||
6 | school. The qualified school shall notify the scholarship | ||||||
7 | granting organization of its necessary costs and fees as well | ||||||
8 | as any maximum scholarship amount set by the school .
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9 | Scholarships shall be prorated as follows: | ||||||
10 | (1) for eligible students whose household income is | ||||||
11 | less than 185% of the federal poverty level, the | ||||||
12 | scholarship shall be 100% of the amount determined | ||||||
13 | pursuant to this subsection (e) and subsection (e-5) of | ||||||
14 | this Section; | ||||||
15 | (2) for eligible students whose household income is | ||||||
16 | 185% or more of the federal poverty level but less than | ||||||
17 | 250% of the federal poverty level, the average of | ||||||
18 | scholarships shall be 75% of the amount determined | ||||||
19 | pursuant to this subsection (e) and subsection (e-5) of | ||||||
20 | this Section or in an amount set by the qualified school | ||||||
21 | pursuant to item (iii) of subsection (e) of this Section ; | ||||||
22 | and | ||||||
23 | (3) for eligible students whose household income is | ||||||
24 | 250% or more of the federal poverty level, the average of | ||||||
25 | scholarships shall be 50% of the amount determined | ||||||
26 | pursuant to this subsection (e) and subsection (e-5) of |
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1 | this Section. | ||||||
2 | (e-5) The statewide average operational expense per | ||||||
3 | student among public schools shall be multiplied by the | ||||||
4 | following factors: | ||||||
5 | (1) for students determined eligible to receive | ||||||
6 | services under the federal Individuals with Disabilities | ||||||
7 | Education Act, 2; | ||||||
8 | (2) for students who are English learners, as defined | ||||||
9 | in subsection (d) of Section 14C-2 of the School Code, | ||||||
10 | 1.2; and | ||||||
11 | (3) for students who are gifted and talented children, | ||||||
12 | as defined in Section 14A-20 of the School Code, 1.1. | ||||||
13 | (f) A scholarship granting organization shall distribute | ||||||
14 | scholarship payments to the participating school where the | ||||||
15 | student is enrolled.
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16 | (g) For the 2018-2019 school year through the 2021-2022 | ||||||
17 | school year, each scholarship granting organization shall | ||||||
18 | expend no less than 75% of the qualified contributions | ||||||
19 | received during the calendar year in which the qualified | ||||||
20 | contributions were received. No more than 25% of the
qualified | ||||||
21 | contributions may be carried forward to the following calendar | ||||||
22 | year.
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23 | (h) For the 2022-2023 school year, each scholarship | ||||||
24 | granting organization shall expend all qualified contributions | ||||||
25 | received during the calendar year in which the qualified | ||||||
26 | contributions were
received. No qualified contributions may be |
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1 | carried forward to the following calendar year.
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2 | (i) A scholarship granting organization shall allow an | ||||||
3 | eligible student to transfer a scholarship during a school | ||||||
4 | year to any other participating school of the custodian's | ||||||
5 | choice. Such scholarships shall be prorated.
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6 | (j) With the prior approval of the Department, a | ||||||
7 | scholarship granting organization may transfer funds to | ||||||
8 | another scholarship granting organization if additional funds | ||||||
9 | are required to meet scholarship demands at the receiving | ||||||
10 | scholarship granting organization. All transferred funds must | ||||||
11 | be
deposited by the receiving scholarship granting | ||||||
12 | organization into its scholarship accounts. All transferred | ||||||
13 | amounts received by any scholarship granting organization must | ||||||
14 | be separately
disclosed to the Department.
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15 | (k) If the approval of a scholarship granting organization | ||||||
16 | is revoked as provided in Section 20 of this Act or the | ||||||
17 | scholarship granting organization is dissolved, all remaining | ||||||
18 | qualified contributions of the scholarship granting | ||||||
19 | organization shall be transferred to another scholarship | ||||||
20 | granting organization. All transferred funds must be deposited | ||||||
21 | by the receiving scholarship granting organization into its | ||||||
22 | scholarship accounts. | ||||||
23 | (l) Scholarship granting organizations shall make | ||||||
24 | reasonable efforts to advertise the availability of | ||||||
25 | scholarships to eligible students.
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26 | (Source: P.A. 100-465, eff. 8-31-17 .)
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1 | Section 99. Effective date. This Act takes effect upon | ||||||
2 | becoming law.
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